Nelson Higher Education

Higher Education

Cornerstones of Managerial Accounting, 3rd Edition

  • Maryanne M. Mowen
  • Don R. Hanson
  • Dan L. Heitger
  • David McConomy
  • Bradley D. Witt
  • Jeffrey Pittman
  • ISBN-10: 0176721231
  • ISBN-13: 9780176721237
  • 0 Pages | Hardcover
  • Previous Editions: 2015, 2012, 2009
  • COPYRIGHT: 2018 Published
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About the Product

Cornerstones of Managerial Accounting provides a solution to help students reach course goals and build a foundation of knowledge that will benefit them as they move through their post-secondary career and beyond. The Cornerstone approach focuses on three core needs: building a strong foundation of knowledge, analyzing and understanding interrelationships, and building confidence to make sound business decisions. There is a “Cornerstone” for every major calculation in the book, serving as a “How To” guide for students. Our digital platform, CNOW v2, provides additional opportunities for practice and reinforces what is taught in the text. It is the integration of the textbook and the unique features in CengageNOW V2 that provides students with the tools to learn, understand, and apply what they are learning. Help your students get where they need to be with Cornerstones!


  • “Cornerstone” examples provide concise descriptions of the ‘how’ and ‘why’ of concepts and are found throughout the text.

  • The step-by-step approach allows students to gain confidence and master the basics before moving on.

  • Each “Cornerstone” includes four parts: Information, Required, Solution, and Why. These pieces help students understand all facets of the topic being taught and encourage them to think about the business decisions surrounding each technique.

  • Examples are easy to find, clear, and consistently formatted to help students digest and master the material faster.

  • Cornerstone Videos are available in CNOW v2 and are linked to every Cornerstone exercise. These videos further solidify concepts and appeal to visual and auditory learners.

  • Integrative Cases present opportunities to integrate concepts from several chapters in order to better understand the interrelationships and impact that decisions can have.

  • The “You Decide” boxes ask students to put themselves in the shoes of a manager and consider different implications and outcomes of their decisions.

  • The Integrated Learning System (ILS) provides a framework for each chapter. Learning objectives are listed at the start of the chapter and reappear throughout, helping to keep students focused and on track.

  • CengageNOWv2™ connects students to assignable content matched to their text. CNOWv2 is an interactive learning solution that helps students focus on what they need to learn. It improves academic performance by increasing students’ time on task and giving them prompt feedback. With a focus on active learning, concept mastery, and automatic grading, CNOWv2 is an easy-to-use digital resource designed to get students involved in their learning progress and be better prepared for class participation and assessment.

About the Author

Maryanne M. Mowen

Maryanne M. Mowen is associate professor of accounting at Oklahoma State University. She received her Ph.D. from Arizona State University. With degrees in economics and history, she brings a unique interdisciplinary perspective to teaching and writing in both cost accounting and management accounting. Her research interests include management accounting, behavioural decision theory, and Sarbanes-Oxley compliance, and she teaches an ethics course about the impact of Sarbanes-Oxley on the accounting profession. Mowen has published articles in journals such as Decision Science, Journal of Economic Psychology, and Journal of Management Accounting Research. She has also served as a consultant to mid-sized and Fortune 100 companies and works with corporate controllers on management accounting issues. Outside the classroom, she enjoys hiking, travelling, reading mysteries, and solving crossword puzzles. Don R. Hansen is professor of accounting at Oklahoma State University. He received his Ph.D. from the University of Arizona and has an undergraduate degree in mathematics from Brigham Young University. His research interests include activity-based costing and mathematical modelling. Hansen’s published articles appear in The Accounting Review; Journal of Management Accounting Research; Accounting, Organizations, and Society; Accounting Horizons; and IIE Transactions.

Dan L. Heitger

Dr. Dan L. Heitger is the Deloitte Professor of Accounting and Co-Director of the Center for Business Excellence at Miami University. He received his Ph.D. from Michigan State University and his undergraduate degree in accounting from Indiana University. He actively works with executives and students of all levels in developing and teaching courses in managerial accounting, business sustainability, risk management, stakeholder management, governance, and business reporting. He co-founded an organization that provides executive education for large international organizations. His interactions with business professionals, through executive education and the Center, allow him to bring a current and real-world perspective to his writing. His published research focuses on managerial accounting and risk management issues and has appeared in HARVARD BUSINESS REVIEW, BEHAVIORAL RESEARCH IN ACCOUNTING, ACCOUNTING HORIZONS, ISSUES IN ACCOUNTING EDUCATION, JOURNAL OF ACCOUNTANCY, and MANAGEMENT ACCOUNTING QUARTERLY. His outside interests include hiking with his family in the National Park system.

David McConomy

After qualifying as a Chartered Accountant with Arthur Andersen & Co. in Toronto, Mr. McConomy's thirty year career in business has focused on the Finance and Accounting requirements of small to medium sized businesses. He has gained considerable experience assisting young companies, mainly in the technology field, in strategic planning and corporate finance. As Chief Financial Officer of Systemhouse Ltd. (which was later sold to MCI and subsequently to EDS), he was instrumental in the process of taking that company public. During his tenure with Systemhouse, revenues rose from $16.5 million to in excess of $100 million. While with Antares Electronics Inc., he raised $20 million (through venture capital investments, sale and leaseback transactions and restructuring bank lines of credit) to enable the company to become one of Profit Magazine's fastest growing companies, as revenues increased over a three year period from $36 million to $100 million. Latterly, he assisted ComentiX Computer Systems Inc. to become a public company and to raise funds from a variety of sources to fund its growth. He is currently Assistant Professor at Queen’s School of Business. Since joining the Queen’s Faculty in 2001, he has won numerous Faculty Teaching Awards and prides himself in engaging with the students both within the classroom and outside of it. Mr. McConomy is the Director of the Queen’s Graduate Diploma in Accounting program. He has taught accounting, financial management and business strategy (at the undergraduate and MBA levels) on both a full time and part time basis at Queen's University, University of Ottawa and, internationally, in association with the Academy of Economic Studies in Bucharest, Romania and in Beijing, China.

Jeffrey Pittman

Dr. Jeffrey A. Pittman was recently appointed Memorial University’s Chair in Corporate Governance and Transparency as well as its CMA Professor of Accounting. Dr. Pittman has been an editor of Contemporary Accounting Research since 2010. Although he primarily publishes his research in such major accounting journals as The Accounting Review, the Journal of Accounting Research, the Journal of Accounting and Economics, and Contemporary Accounting Research, Dr. Pittman’s papers also appear in top finance (e.g., the Journal of Financial Economics) and ethics (e.g., the Journal of Business Ethics) outlets. Apart from a two-year visit at the Hong Kong University of Science and Technology (HKUST), Dr. Pittman has taught at Memorial University since graduating from the University of Waterloo’s accounting PhD program in 2001. He has received numerous research and teaching honours, including the Dean’s Teaching Award at Memorial’s Faculty of Business Administration in 2010. Dr. Pittman, who is a chartered accountant and certified management accountant, has been a moderator in the CMA professional program for several years.

Table of Contents

Chapter 1: Introduction to Managerial Accounting
Chapter 2: Basic Managerial Accounting Concepts
Chapter 3: Cost Behaviour
Chapter 4: Cost–Volume–Profit Analysis: A Managerial Planning Tool
Integrative Case 1
Chapter 5: Job-Order Costing
Chapter 6: Process Costing
Chapter 7: Activity-Based Costing and Management
Chapter 8: Absorption and Variable Costing, and Inventory Management
Chapter 9: Budgeting, Production, Cash, and Master Budget
Chapter 10: Standard Costing: A Managerial Control Tool
Integrative Case 2
Chapter 11: Flexible Budgets and Overhead Analysis
Chapter 12: Performance Evaluation and Decentralization
Chapter 13: Short-Run Decision Making: Relevant Costing
Chapter 14: Capital Investment Decisions
Integrative Case 3
Q&A Boxes: Answers
Subject Index
Company Index

New to this edition

  • This new edition features a revision of approximately 25% of the end-of-chapter content.
  • The opening vignettes have been updated to reflect additional Canadian companies or multinational corporations that have prominent operations in Canada.
  • Chapter 1 includes changes made to the CPA in 2015.
  • Chapter 4 has been expanded to include new sections on cost–volume–profit relationships and cost structure.
  • Chapter 6 includes updated revenue statistics.
  • Blueprint Problems have been fully revised for the 3rd Canadian edition and are author-written specifically for this text. These are teaching-type problems that are based on the Cornerstones from within that chapter. They are written to help students understand the fundamental accounting concepts and how they can apply them.
  • The Cornerstone Videos have been revised and updated to provide clear examples, additional hints, and tips, all designed to help guide students through each Cornerstone problem.


All supplements have been updated in coordination with the Main title.
Please see Main title page for new to this edition information.

Instructor Supplements

Online Instructor Resources for Cornerstones of Managerial Accounting  (ISBN-10: 017679526X | ISBN-13: 9780176795269)
CNOW v2 Instant Access (12 Months) for Cornerstones of Managerial Accounting  (ISBN-10: 0176793917 | ISBN-13: 9780176793913)
CNOW v2 Instant Access (6 Months) for Cornerstones of Managerial Accounting  (ISBN-10: 0176793909 | ISBN-13: 9780176793906)

Student Supplements

eBook: Cornerstones of Managerial Accounting  (ISBN-10: 0176853774 | ISBN-13: 9780176853778)
CNOW v2 Instant Access (12 Months) for Cornerstones of Managerial Accounting  (ISBN-10: 0176793917 | ISBN-13: 9780176793913)
CNOW v2 Instant Access (6 Months) for Cornerstones of Managerial Accounting  (ISBN-10: 0176793909 | ISBN-13: 9780176793906)